Deloitte: Why chief transformation officer is a key hire
A transformation nerve centre (TNC) is critical for a high performing office as it creates visibility, intensity and accountability providing that competitive business edge, according to Deloitte.
A new report from consultants Deloitte explores the role of the TNC, what it takes to execute a complex enterprise-wide program that delivers results, and why the appointment of a chief transformation officer is crucial for future success.
According to the report titled 'What it takes to execute large-scale and lasting transformations', a TNC is chartered with comprehensively managing the planning, execution and the outcomes of digital industrial transformation.
“The sheer complexity, scope and ambiguity of transformation requires dedicated capabilities to architect the transformation, orchestrate across multiple intersecting threads of work and track progress against goals," comments Deloitte. “The TNC creates visibility, intensity, and accountability, cornerstones of successful transformations.”
The report says a TNC should house capabilities critical to the transformation under unified leadership with a focus on the three pillars of; architecting, orchestrating and governing the transformation.
“Leaders can design a centre to overcome some of the most common reasons transformations fail, including employee resistance, inadequate sponsorship, and poor project management.”
According to Deloitte, a comprehensive digital industrial transformation requires the implementation of strong and dedicated TNC capabilities – which should have the following five characteristics:
- Enterprise wide Affect not only operations but the talent and underlying technology reimagining the enterprise from end-to-end.
- Business or enterprise model impact Includes a redesign of the enterprise operating model and expands on business models.
- CXO-Driven Led by a C-suite member employing a top-down approach to critical decision-making.
- Multifunctional Cuts across the enterprise from functions to business units and regions.
- Exponential change Scale with sizeable gains in revenue, margin, experience and/or business velocity rather than delivering incremental change.
Seven characteristics of a high-performing TNC
“Once the goals of the transformation - how wide, how fast, how different - have been established and communicated, the most critical element of executing successful transformations is the team itself, beginning with the TNC,” points out the report.
“Our experience shaping and supporting end-to-end transformations has helped uncover, specifically, seven characteristics that characterise high-performing TNCs:
● Cross-functional – representation across business functions, product lines and regions
● Independent – authority to make rapid decisions that shape the transformation strategy
● Dynamic – shifting composition of the team based on transformation phase
● Bold – willingness to make tough decisions – even with ambiguity
● Communicative – transparent and frequent information-sharing with all stakeholders
● Externally supported – inclusion of outside expert to offer balance perspective
● Innovative – use of technology throughout the program
What is the value of a chief transformation officer?
Deloitte sees the need for accountable and effective leadership at the helm of this digital transformation. “The appointment of a CTrO can send positive market signals, help ensure that transformation doesn’t overwhelm other executives and allow the cultivation of transformation-specific skill sets.”
Deloitte point out transformation leaders should have five essential qualities which include:
● Bandwidth to fully commit to the demands of a digital industrial transformation
● Deep understanding of the company’s customers, markets and operations
● Risk appetite to take on challenges and stick to the goals of the transformation
● Authority to make transformation-related decisions in partnership with the CEO
● Influence with other executives so that decisions are implemented effectively
“A strong TNC can be instrumental in architecting, orchestrating, and tracking the transformation journey, and helping companies achieve their transformation ambitions and outcompete the market,” concludes Deloitte.
Microsoft: Building a secure foundation to drive NASCAR
Microsoft is a key partner of The National Association for Stock Car Auto Racing (NASCAR) and together they are driving ahead to create an inclusive and immersive new fan experience (FX).
These long-term partners have not only navigated the challenges posed by the COVID-19 pandemic with the use of Microsoft Teams and Microsoft 365, but are now looking to a future packed with virtual events to enhance the FX, well beyond NASCAR’S famous Daytona racetrack.
“Together, we've created a secure environment that's allowed for collaboration, but the future is all about the fans”, said Melinda Cook, General Manager for Microsoft South USA Commercial Business, who cited a culture of transparency, passion, adaptiveness, and a growth mindset as to why this alignment is so successful.”
“We've partnered to create a fluid, immersive experience for the users that is supported by a secure foundation with Microsoft in the background. We are focused on empowering and enabling customers and businesses, like NASCAR, to reach their full potential. We do this with our cloud platform which provides data insights and security.”
“Our cloud environment allows NASCAR to move forward with their digital transformation journey while we are in the background,” said Cook who highlights that Microsoft is helping NASCAR
- Empower employees productivity and collaboration
- Improve fan engagement and experience
- Improve environment security and IT productivity
- Improve racing operations
Microsoft Teams, which is part of the Microsoft 365 suite, enabled employees to work remotely, while staying productive, during the pandemic. “This allowed people to provide the same level of productivity with the use of video conference and instant messaging to collaborate on documents. Increased automation also allows the pit crews, IT, and the business to focus on safety, racing operations, and on the fan experience,” said Cook.
“We have started to innovate to create a more inclusive fanbase, this includes using Xbox to give people the experience of being a virtual racer or even leveraging some of the tools in Microsoft Teams to have a virtual ride along experience.”
“These environments are how we create a more inclusive and immersive experience for the fans. We're working on a virtual fan wall which allows people from new locations to participate in these events,” said Cook, who pointed out Microsoft was also helping bring legacy experiences alive from NASCAR’s archives.
“At Microsoft we can take it one level further by letting fans know what it's like to see the pit crew experience, the data and all the behind-the-scenes action. We will continue to improve automation with machine learning and artificial intelligence, from marketing to IT operations to finance to racing operations,” said Cook.
Christine Stoffel-Moffett, Vice President of Enterprise Technology at NASCAR, said: “Microsoft is one of our key partners. They have been instrumental in helping the NASCAR enterprise technology team re-architect our Microsoft systems to ensure an advanced level of security across our environment, contribute to our business outcomes, and focus on fan experience.”